The Effectiveness of Artificial Intelligence In Enhancing Fraud Detection in Financial Systems

This paper examines the application of Artificial Intelligence (AI) in fraud detection within financial systems. It reviews previous studies to evaluate the effectiveness of AI-based methods compared with conventional rule-based approaches, as well as the key components and challenges involved in their implementation. The findings indicate that AI can improve the accuracy and efficiency of fraud detection, while factors such as data quality, model transparency, data privacy, system integration, regulatory requirements, and implementation costs remain important challenges.